7/25/19 was up +0.99 and the model projects the component on today's kill will be up between +0.80 and +1.10. The up-trend is alive and well. The QQQs settled premium to the component by +7.85. Packers were able to afford bidding higher for hogs because they were able to get 2.45 more for the pork they produced. That is a nice jump in the cutouts.

Packers purchased 98.3% of the moving average daily purchases of total hogs by the time the afternoon reports were released and 98.2% on the Index hogs. I do not see anything in the data that suggests hog futures should have been weak across the board today so when they sold off, I bought two more QQQ pigs.

The strength of the up-trend in the Index and the cutouts has me thinking the soaring index will move enough to close the "GAp" and push the QQQs high enough to bust through the current seasonality high of 84.59 posted on 5/17/19 and post an even higher seasonality high about the time the QQQs go to cash settlement.

Best wishes,

Doc